The Gold Rush of 2021!

Welcome to 2021, the year of the Gold Rush and Helicopter Dollar Drop …

In the Federal Reserve’s final meeting of 2020, the Fed was very clear that their only mission is to print as much money as it takes to create inflation.

Of course, Power Income’s No. 1 rule in trading is to “Trade with the Fed.”

You see, Fed money flow is the most powerful force in the markets …

And it’s time to go with the flow.

Going for the GLD (Strategy)

I spent New Year’s Day doing research so that you can get off to a fast start in 2021. 

It was worth it.

Check this out …

Twelve out of the past 15 years GLD killed it in January … and seasonal trends can be powerful!

Now, let’s see how the broader trends impact January performance:

During the only down trend over the entire period, GLD put in its greatest January performance.

That’s a pretty powerful seasonal!

Setting Up for Success

The set-up for GLD looks good heading into this January.

Since we anticipate a quick move to the upside, purchasing GLD calls is a sound strategy.

I will pull the trigger on:

An outright buy of GLD 179 calls to 2/19/21 expiration based on Thursday’s 4.70 close.

Exit Strategy Scenarios:

Based on our analysis for the Jan move, you can make an incredible 1,200% annualized return!

Bringing It Home

Beyond what I think will be a great trade, I also want you to notice the three building blocks for a consistently successful approach to trading that were in practice above.

  1. Do the research and find supporting data 
  2. Locate the optimal risk/reward trade
  3. Pre-plan your entry and exit strategy

Consistently practice those steps and you will be in a better position to build your wealth.

Please reach out with feedback, thoughts or questions and as always …

Live & Trade with Passion,

Griff


DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk.

 DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.

DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.

Stocks are the new Bonds

Hey There Income Hunters,

Happy New Year! 

As I turned the page on 2020, I started thinking … 

Stocks actually may be a major beneficiary of the Federal Reserve’s commitment to purchase $120 billion in bonds every month. 

By buying those bonds, the Fed is effectively fixing interest rates below their fair value…

This eliminates retirees or savers from earning a positive return after inflation.  

Meanwhile, some great investment-grade dividend stocks are undervalued AND offer dividend distributions far higher than US Treasury Bonds. 

That’s why it makes total sense for investors to swap out of bonds and add dividend stocks to their income portfolio.

But you have to know where to look…  

Time to Hunt Income

The four sectors that ended up negative for the year are also the highest yielding and should do well as vaccines are distributed and we move past COVID.

Take a look at the year-to-date returns of the major US market sectors:

Energy, Real Estate, Financials and Utilities are normally all ideal income producers.

The sectors in general have taken a beating due to COVID lockdowns.

However, many stocks were able to continue paying their dividend and are now undervalued.

Looking forward to 2021, I expect the Fed to increase bond purchases making the dividend stocks appear that much more valuable … 

On top of that, if inflation rises as expected then the inflation-adjusted returns of bonds will go further into negative territory and force savers to look elsewhere for returns.  

When inflation goes negative like I show below then money HAS to start looking for a higher return elsewhere, even if its viewed as “risky.”

This is all positive for owning those sectors I mentioned so…

Let’s Make Some Money

I did some research for my Income Hunters and found a few excellent candidates in the energy sector… 

Before we jump in to a specific stock, I want to share a helpful checklist I use when scanning for good dividend stocks:

  • Consistent Dividend Growth. I will be a little flexible here depending on the potential for capital appreciation and also if there is room for earnings growth, which could increase the dividend.
  • Solid Dividend Coverage by Both Net Income and Free Cash Flow. Here I like to see a ratio of dividend payment to net income of 80%, and it could be a little higher against free cash flow. 
  • Strong Balance Sheet (Interest Coverage and Debt/Equity). A debt-to-equity ratio above one is a red flag because during tough times it could force them to cut the dividend. 
  • See That They Generate a High Return on Invested Capital (ROIC). The golden rule is to find dividend stocks that return over 10% as a total when combining the dividend yield with the dividend growth rate. This can be an average total return of the entire portfolio. 

So, here’s a pick that fits the bill…

Enterprise Products Partners L.P. (EPD) is one of the largest and most well-diversified midstream companies in the energy industry. 

The company has suffered this year along with most in the sector, despite the fact that its business model is much safer than many of its peers. 

How about this comparison … 

  • EPD is rated BBB+ and yields 9% versus the Fed index of BBB corporate bonds that only returns 2.05%. 

It is also very important to see a consistently growing dividend and the company’s debt ratio below 1…

EPD’s dividend is currently growing at 3.5% a year and their long term debt-to-equity ratio is 51% so EPD is not over leveraged by any means. 

Bottom line: EPD offers opportunities for growth and income.

I see tremendous opportunity in the first half of next year to build a portfolio of solid dividend stocks in the Energy, REIT and Utility spaces.

EPD is a great pick for a core long-term Power Income portfolio that can grow from $10,000 to $1 million. 

That’s something I talk about in my free e-book Turn $10,000 Into $1 Million Without Breaking A Sweat. Grab a copy by clicking here.

It is very doable and in future letters I will introduce conservative option strategies that can further increase overall returns. 

Until then…

Live & Trade with Passion my Friends,

Griff


DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. 
DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.
DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.

Stimulus Checks Come with HUGE Strings Attached! Here’s What to Do …

Hey There Income Hunters,

As Congressman and noted fiscal watchdog Wright Patman growled way back in 1941, “The Federal Reserve bank buys government bonds without one penny.”

It’s pretty amazing that 80 years ago the Fed was doing the exact same thing it is today.

AND nobody really gets it!

Everyone talks about more stimulus, more printing …

Meanwhile, every nation that has gone down this route after accumulating so much debt …

… just kept printing money until they devalued their citizens’ wealth to save itself.

It’s called debasing the currency.

It’s a nice little trick that transfers wealth from the citizens back to the government so it can pay down its debt.

AND there is certainly plenty of debt to payoff.

 A Massive Increase in US Government Debt in the Last 30 Years:

The figure above is seriously important for all investors to understand. I’m sure many people you know – and maybe even you – are holding so-called “safe haven” US Treasury bonds in retirement accounts thinking they could live off that income.

However, investors will be sadly disappointed unless they take appropriate action to protect their wealth.

You see, printing so much currency at the end of a debt cycle creates inflation …

And the Fed is purposely going down this route.

What they won’t tell you is inflation destroys investors’ returns.

Let’s take a look at what happened during the 1970s inflationary period:

Bond rates will rise just as fast as inflation rates, meaning bond prices will collapse. 

For retirees and others with a large amount of bonds in their portfolio, this is detrimental to their wealth.

In the example above the 5-year bond rate rose 7.5% in the first five years. 

Today, if 5-year Treasuries rise just 5%, an investor would lose 20% of their capital.

Time to Hunt Income
However, there are ways to protect your bond portfolio and capitalize on the tailwind of inflation …

CME Bond Futures provide a deeply liquid market and many products ideal for speculating and hedging interest rates. (CME Group is a global markets company.)

See the figure below:

All About YOU
The next few years will be interesting, to say the least.

My mission through Power Income is to build a community of Income Hunters who not only have the presence of mind to take advantage of the turmoil swirling around them, but the ability to prepare others as well.

The goal is to put you on the fast track to financial freedom.

And we can do it together!

To get there, I’ll teach you a disciplined, systematic approach applied to a defined universe of stocks, options and futures.

You’ll learn to maximize your leverage and minimize risk so you will only need a couple of hours a week to manage your portfolio.

Sound like a plan? Great!

Feel free to email me anytime along the way with thoughts or questions and let’s connect on Facebook and Twitter.

I’d like to wish everyone a very Happy New Year, and I look forward to a happy, healthy and profitable 2021!

Live & Trade With Passion My Friends,

Griff


DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. 

DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.

DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.

Good Times Never Seemed So Good!

Hey There Income Hunters,

Hope you enjoyed the Christmas break! 

I was up in New York visiting family and friends, and it was amazing how many conversations involved Bitcoin, TESLA and IPOs …

That’s my world 24/7, of course, but I really was more interested in sharing Christmas cheer …

However, I do get it.

Anyone who has a wealth manager or directed investment account feels great when they look at their account statements.

For many in the long-only investor club, good times really have never seemed so good! 

This had me thinking about the real potential for a major spike in spending over the next six months.

I’ll lay out what I’m looking at starting with the “big picture” boom/bust cycle (below) and where we’re at in it … 

The US Shift to Inflationary Boom

  • Since 2008 the US has been in a Deflationary Boom, close to trend growth (the long-run average of growth) with new innovations keeping downward pressure on prices. 
  • COVID-19 severely restrained economic activity, while money supply simultaneously soared. That built pent-up demand for goods and services.
  • Prices are just beginning to rise and a transition to the Inflationary Boom quadrant has begun. Check it out …

Follow Up Considerations:

  • Since interest rates are already at zero, this cycle is different than any we’ve seen post-depression. 
  • The Fed has only one option … fuel inflation and hope it doesn’t lead to a shift to the upper left quadrant and an Inflationary Bust. 

The Green Shoots of the Inflation Tree

I have three Inflation Indicators that will guide us along the reflation path …

1. Money Supply: It is flashing green as you can see …

2. Fed Quantitative Easing (QE): The Fed buys bonds from member banks and credits their account at the Fed. The Banks mostly use it for stock and bond market making and it made a new all-time high this past week.

3. Future Spending Capacity: This indicator gives us a heads up for a rise in spending activity (velocity). This is the most important for signs of impending inflation and it is flashing green for reflation trades. 

So, as you can see, judging by my indicators, we are headed for more of the same with an acceleration of inflation by mid-year.

My best guess is we get another stimulus package in Q1 and that will be the gasoline on the fire that leads to a second-half surge in prices. 

Next time I’ll share my reflation portfolio and my favorite strategy that lets me sleep at night …

Live & Trade with Passion My Friends,

Griff


DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk

.DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.

DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.

What the Mall Can Tell Us About A Post-Christmas Crash

Hey There fellow Income Hunters,

We have certainly been laying out a bullish case for being long stocks and commodities lately.

Like how the financial conditions are the easiest they have been in over 30 years …

PLUS record call buying and a put/call ratio near the lows of the dot-com bubble …

Which all feeds into the psychology of investors … 

So, I started thinking back to the 1987 stock market crash, the dot-com crash and the housing market collapse.

The one thing they all had in common was something that’s going on in the market right now …

For weeks heading into all three crashes everyone was bullish!

It’s just the makeup of a bubble … you never know when it’s over until it’s over.

So, I have been looking for reasons to be cautious while the sentiment is so one-sided.

Then I learned that S&P 500 Global Market Intelligence has picked seven mall owners that face exceptional risks in the coming months. 

Former Macy’s CEO Terry Lindgren weighed in on the findings with CNBC, saying, “Retailers which have a weak balance sheet today aren’t going to get relief in January. It’s going to get tougher. When the volume of purchases drops dramatically after Christmas, the expenses remain.”

It made me think we could be heading back to recession in Q1. That would just mean we have a correction, the Fed does another massive QE and we are back to the races.

However, we can’t pass on an opportunity that pays us handsomely and gives us more bullets to fight another day …

A voice of reason in a perfect storm of bullishness. 

Now this is when you take emotion out of the equation and consider a good reward-to-risk trade while it is not “general consensus!”

So, I pulled the trigger and purchased SPY 15Jan21 365/355 Put Spread.

  • For a debit spread of 2.46 on 100 shares just to have a bit of insurance against the portfolio. 
  • I can lose $246 or make $1,000. However, it is much more about diversification, good value and smart, objective decision-making. 
  • A small 5% correction and I collect on a 400% return just because the market may be a bit too frothy.

On that note, I am heading to New York to see my family for Christmas and will send a post-Christmas letter from there.

I’d like to wish everyone a very Merry Christmas and a safe, healthy, happy AND profitable New Year!! 

Live & Trade with Passion My Friends,

Bill


DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. 
DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.
DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.

A Crossfire Christmas!


Did you do a double-take at the sight of volatility spiking nearly 33 percent on Monday morning?? Replace butterflies with bullets with Option Pit’s Volatility Edge trading service. It was built to help you make money in moments exactly like this. Get in now.


Hey There Income Hunters,

After a great weekend of wrapping presents and laying low with family and friends, I returned home to market crossfires coming from ALL angles:

  • A new stimulus bill will pass!
  • There’s a new COVID variant!
  • Equity markets down 2%!
  • Bank stock buy-backs have been reintroduced!
  • Oil tanks 4%!

So, what do Income Hunters do in these situations?

We rise above the noise, take emotion out of the trade and stick to the rules of our game…

It’s a top-down approach that includes:

  •  Trading WITH the Fed
  •  Looking at Long-term Cycles
  •  A Focus on Investor Psychology
  •  Systematic Discipline
  •  Finding Short-term Opportunities

And we remember the core Power Income portfolio view:

  • The Fed is trapped in a long-term debt spiral with only one way out — Inflation.
  • It may take a while, but investor psychology will shift to exchanging cash for real assets.
  • That’s when the Fed loses control of inflation and real assets SOAR.

And guess what? This stimulus package just got us one step closer

So, overall, the news is positive — $900 billion more in currency will be created!

Right after the open, I added to the reflation trade choosing SLV, the silver ETF.

It is liquid and has liquid options. 

There’s one other trade I want to share, as well. You will love the reward-to-risk ratio on this one and I’ll share a few fundamental secrets …

The Power of “Trading” Dividend Stocks

A big part of my reflation portfolio will be Energy infrastructure stocks (Master Limited Partnerships or MLPs) and Real Estate Investment Trusts (REITs)

MLPs and REITs are perfect structures for dividend income seekers because they’re awarded favorable tax treatments for distributing the majority of profits to investors. 

An MLP I particularly like is Energy Transfer (ET), a solid player in the Oil & Gas and Transportation sectors.  

More importantly, while their peers are cutting back on CapEx to continue paying their dividend, ET is cutting its dividend to continue its CapEx plan.

That is a BOON for Income Hunters focused on power trading using options.

We will happily pass on a 9% dividend income for a 7-1 reward-to-risk trade opportunity on a good company with a single digit price-to-earnings ratio.

Live & Trade w/ Passion My Friends,

Griff

PS – By the way, you can do to vol what Santa does to his reindeer: Harness up and take flight. And Option Pit’s Volatility Edge can help you soar into 2021. Get on board.


  • DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees do not offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. 
  • Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Option Pit LLC IS NOT AN INVESTMENT ADVISOR OR REGISTEREDRight  BROKER. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute a solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.
  • To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Use caution when entering any option transaction and it is recommended you consult with your financial advisor for investment, legal or tax advice relating to options transactions.

Look How Fast My Last Trade Wins!

Hey There fellow Income Hunters,

Well, after yesterday’s discussion on the Fed and the Bond market I came today ready to execute one of my favorite bond strategies…

I’ll take you through the process because it will help you see how you can get an advantage by leaning on the Fed and Bond supply.

Post Fed meeting I thought TLT would struggle because the Fed made no mention of buying longer dated bonds plus their aim was getting inflation above 2%, which is bearish for bonds. 

My third reason for selling TLT was a Treasury announcement to issue 20yr Treasury Bonds on Monday. This is the official announcement:

We will be seeing plenty of these in the new year and I planned on buying a short-term TLT put spread on any rally today to set up for this auction. I got a nice break when TLT opened higher. 

So, I pulled the trigger in the first hour and this is what followed:

So, I purchased a 12/31 expiry 157.5 – 156.5 put spread for .35. I was very happy with an almost 3-1 reward to risk ratio. 

However, I may regret not taking my reward. 

My point is, in this market environment when you have good money in a short-term trade heading into quadruple witching Friday… you Take it and move on to the next one. 

See, I believe the rules of trading are changing…

The 60/40 portfolio allocation is broken because the Fed is purposely price fixing bonds by buying them at rates below inflation. This creates a negative “real return” scenario and lessens the role of bonds as a safe haven asset…. Bonds are becoming riskier than stocks in some regard and this is really important to understand.

So, with volatility expected to remain high, trading option strategies and hunting for good reward to risk ratios across asset classes becomes a much better investment strategy.  Especially in a period when volatility is above the historical norm. 

Power Income the “new style” of trading is about greater rewards, lower risk, a systematic approach and enjoying every minute. In other words making more money while having more time to enjoy life…

As we head into the end of year when volatility is seasonally elevated and market volume is thin… Prepare a solid game plan, jump on fast income trades and capture super-sized gains. 

Then you have extra money to buy yourself GI Joe with the Kung Fu Grip for Christmas!

Live&Trade w/Passion my Friends,

Griff

  • DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees nor its affiliates offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. 
  • Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Option Pit LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute a solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.
  • To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Use caution when entering any option transaction and it is recommended you consult with your financial advisor for investment, legal or tax advice relating to options transactions.